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The effect of innovative mindset and behavior on innovation performance and competitive advantage: a case of halal SMEs owner-managers from Malaysian energy-intensive industry

Author

Listed:
  • Amar Hisham Jaaffar

    (Universiti Tenaga Nasional, Jalan IKRAM-UNITEN)

  • Nurshahirah Abd Majid

    (Universiti Tenaga Nasional, Jalan IKRAM-UNITEN)

  • Saraswathy Kasavan

    (Management and Science University)

  • Aerni Isa

    (Taylor’s University)

  • Mohd Nur Ruzainy Alwi

    (Universiti Tenaga Nasional, IKRAM-UNITEN)

  • Abdul Rahman Zahari

    (Uniten Business School, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN)

Abstract

Malaysia was ranked 32nd on the Global Competitiveness Index in 2022, which denotes that the level of R&D and productivity in SMEs in Malaysia needs to be improved. Therefore, more research is needed to ensure it remains competitive in the global halal marketplace by using innovative concepts as a culture to promote energy-intensive halal SMEs. This study examines the sequential influence of an innovative mindset, behavior, and performance on competitive advantage among SME owner-managers embarking on halal businesses. Data were gathered from SME owner-managers from the halal energy-intensive industry by conducting a self-administered and online-based survey involving 140 respondents. Data were analyzed with the partial least squares technique (SmartPLS 3.0). The results of this study show that innovative behavior was a direct result of an innovative mindset. On the other hand, innovative behavior produced innovation performance, which in turn produced a competitive advantage. This study shows that SMEs owner-managers of halal energy-intensive industries need possess both innovative behavior and innovative attitude as valuable assets. Moreover, a key component in their ability to gain a competitive advantage is their performance in innovation.

Suggested Citation

  • Amar Hisham Jaaffar & Nurshahirah Abd Majid & Saraswathy Kasavan & Aerni Isa & Mohd Nur Ruzainy Alwi & Abdul Rahman Zahari, 2024. "The effect of innovative mindset and behavior on innovation performance and competitive advantage: a case of halal SMEs owner-managers from Malaysian energy-intensive industry," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-19, December.
    • Handle: RePEc:spr:joiaen:v:13:y:2024:i:1:d:10.1186_s13731-023-00359-z
    DOI: 10.1186/s13731-023-00359-z
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